Summary
Typical energy bills in the UK could increase by £332 a year starting in July, according to a forecast by the consultancy Cornwall Insight. This is due to higher oil and gas prices linked to the ongoing US-Israel conflict with Iran. The energy regulator Ofgem will decide on the new price cap in late May, which affects about 19 million households.
Key Facts
- Cornwall Insight predicts UK energy bills may rise by £332 a year in July.
- The prediction is due to higher oil and gas prices because of a war involving the US, Israel, and Iran.
- Ofgem, the energy regulator, will set the cap on household energy bills on 27 May.
- The price cap limits the maximum cost for gas and electricity for typical households.
- Current forecast suggests the energy price cap will increase from £1,641 to £1,973 annually.
- The situation in the Middle East causes frequent updates to these forecasts.
- The energy price cap affects about 19 million households in England, Wales, and Scotland.
- There is ongoing political debate in the UK about whether financial support should be broad or targeted.
